Coinbase's Ethereum Layer 2 network, Base, retains its leadership among similar solutions despite a decline in activity post record-breaking January.
Reduction in Transaction Volume on Base
Since reaching a peak in January, transaction volume on the Base network has decreased by 38%. Nevertheless, the network continues to be the most active in the Ethereum Layer 2 ecosystem with an average of 7.5 million daily transactions. The stagnation or decline of transaction counts in competing networks has further solidified Base’s dominance.
Role of Coinbase Users in Base's Growth
Coinbase’s user base plays a vital role in the growth of Base. With direct access to the network for over 100 million registered users, they have the opportunity to experience Base firsthand. This infrastructure particularly attracts the interest of institutional players, further enhancing Coinbase’s influence in the cryptocurrency market.
Base Ecosystem Expansion Amid DeFi Growth
Currently, there are nearly 3.5 million unique wallet addresses on the Base network, indicating ongoing user interest. However, it is essential to consider that this number may be artificially inflated, making it necessary to analyze other metrics like transaction volume and total value locked (TVL). The Base ecosystem is shaped by decentralized exchanges (DEXs) and lending protocols like Aerodrome, Uniswap, and Pendle. A significant portion of the network’s TVL is concentrated in these protocols. The DeFi-focused growth parallels the early developmental phases of other Layer 2 networks, as new protocols built on Base contribute to the ecosystem’s diversity.
The Base system continues to hold its leadership in the Ethereum Layer 2 ecosystem thanks to strong support from Coinbase and the active growth of DeFi sectors.
